Nissan And Hover Automotive India Part Ways?

When Nissan first set foot in India, neither did it have a dealership network, nor mass market offerings like the Micra and Sunny but instead had niche offerings like Teana and X-Trail. In order to have a good back end support, it tied up with Hover Automotive India for distribution, marketing and sales of its cars. As a result, Hover became the exclusive sales company for Nissan in India. It seems now that Nissan and Hover Automotive India have part ways now, with Nissan announcing that it will go solo in India handling everything from R&D to sales.

The point of interest for Nissan was they could focus singularly on item advancement (R&D for example) and assembling while Hover profited by being the middle man between Nissan and its dealers. Basically, Hover regulated the setting up of dealers and everything identified with showcasing of Nissan autos in the country. The plan with Hover did not work for Nissan in the longer run, as so is obvious by the various reports of poor administration and disappointment expressed by dealers and clients alike.

The main indications of this partnership ending was seen when Nissan stated that the Datsun Go might be retailed by the company itself, during it’s unveiling at the 2014 Indian Auto Expo, so the chances of Hover in between the same started looking bleak. On 14th of February 2014, Nissan took the chance to report the end of the agreement with Hover. There have been numerous accounts of poor encounters that customers have had with Hover Automotive either while purchasing or while servicing their Nissan vehicles. There have been objections with respect to claims and insurance as well.

Thus, the move on behalf on Nissan looks like an extraordinary move of consuming the obligation of sales and servicing and the customers are likely to welcome the move as well. The sudden end of agreement hasn’t run down well with Hover and the organization has battled back, discharging an explanation which says that Nissan can’t just end the agreement between the two companies. Hover has made it clear it won’t endure being kicked out from being the sole and restrictive distributor of Nissan cars in India. The companies didn’t talk out the issue before going public which we think should have been done beforehand. Nissan has matured well in the country and has a good back end support too. Let us wait and watch for more news. Stay tuned in to Car Blog India.